GBPJPY - A Potential Pump & Dump situation In Play ?
Good to be back, had a slight break from the charts & articles this weekend but we coming in full force this week!
Beginning with news this week, we can expect a lot of volatility to be seen for the Pound as we continue with BREXIT votes , as well as we will be seeing data releases for the Average Earning Index first quarter, retail sales, CPI data and the official bank rate. This will only be released once the MCP Official Bank Rates votes are completed. We also see the Monetary Policy summary this week. So volatility is expected for GBP - not surprising with speculation in the air that the Brexit vote this week may not be held unless "it has prospect of success" as Theresa May struggles with the DUP & ERG.
Back to Technicals, starting on the monthly, I spotted an exciting potential head & shoulder pattern forming with the right shoulder currently being formed. Amidst the Brexit uncertainty, the GBP has gained bullish momentum seen since the flash crash which strengthened the Yen. I believe that after this impulsive movement seen in January, we are in a corrective channel as we can soon expect another impulsive movement. We fell just short of the 71% Fibonacci level which lies 15 pips shy of the monthly key.
Dropping down to the daily timeframe, we saw a nice retracement off the 61.8% Fibonacci level for a buy entry, however I don't see these upward targets of 150.600-153.250 being met as we are seeing resistance currently and selling pressure. I do however see another push higher to test 149.000-150.000 price regions .This will see large downside potential meeting the monthly key. I'll be watching for candle stick reversal patterns and a break of the ascending channel on lower timeframes, and weary of price surges higher looking for stop hunts with volatile news surrounding whether or not we will see a no deal .
We have seen higher highs and higher lows being made on the daily timeframe with a recent discrete higher high made, just 30 pips above the prior higher high. Price looks exhausted and I believe we are reaching Bears territory with the 149.250 - 149.750 price region being a strong resistance during last year and even further. Coming into 2019 reaching these highs, I believe we can see a a massive reversal with fundamental news also playing a large role. This may be a major pump & dump scenario forming.
Let me know what you think !
Instagram : keownarcher - if you need any questions answered head over here.
Beginning with news this week, we can expect a lot of volatility to be seen for the Pound as we continue with BREXIT votes , as well as we will be seeing data releases for the Average Earning Index first quarter, retail sales, CPI data and the official bank rate. This will only be released once the MCP Official Bank Rates votes are completed. We also see the Monetary Policy summary this week. So volatility is expected for GBP - not surprising with speculation in the air that the Brexit vote this week may not be held unless "it has prospect of success" as Theresa May struggles with the DUP & ERG.
Back to Technicals, starting on the monthly, I spotted an exciting potential head & shoulder pattern forming with the right shoulder currently being formed. Amidst the Brexit uncertainty, the GBP has gained bullish momentum seen since the flash crash which strengthened the Yen. I believe that after this impulsive movement seen in January, we are in a corrective channel as we can soon expect another impulsive movement. We fell just short of the 71% Fibonacci level which lies 15 pips shy of the monthly key.
Dropping down to the daily timeframe, we saw a nice retracement off the 61.8% Fibonacci level for a buy entry, however I don't see these upward targets of 150.600-153.250 being met as we are seeing resistance currently and selling pressure. I do however see another push higher to test 149.000-150.000 price regions .This will see large downside potential meeting the monthly key. I'll be watching for candle stick reversal patterns and a break of the ascending channel on lower timeframes, and weary of price surges higher looking for stop hunts with volatile news surrounding whether or not we will see a no deal .
We have seen higher highs and higher lows being made on the daily timeframe with a recent discrete higher high made, just 30 pips above the prior higher high. Price looks exhausted and I believe we are reaching Bears territory with the 149.250 - 149.750 price region being a strong resistance during last year and even further. Coming into 2019 reaching these highs, I believe we can see a a massive reversal with fundamental news also playing a large role. This may be a major pump & dump scenario forming.
Let me know what you think !
Instagram : keownarcher - if you need any questions answered head over here.